Overview. Develop a plan Understand financial aid Be a responsible borrower Take charge of credit cards Understand your credit Prevent identity theft

Size: px
Start display at page:

Download "Overview. Develop a plan Understand financial aid Be a responsible borrower Take charge of credit cards Understand your credit Prevent identity theft"

Transcription

1 Lisa Croat and Andrea Clark Lunch provided by the Higher One Financial Literacy Counts Grant Overview Develop a plan Understand financial aid Be a responsible borrower Take charge of credit cards Understand your credit Prevent identity theft 1

2 Budget A tool for controlling your finances A budget can help you Stay out of financial trouble Know if you re spending too much Avoid impulse spending Achieve financial and savings goals Prepare for emergency situations Manage your student loan obligations Identify your income Track your expenses Check out the result Create a Budget Fixed Expenses Do not usually change from month to month Rent or mortgage Auto insurance Monthly payments on outstanding debt Student loan interest Car loan payment 2

3 Variable Expenses Amount can change from month to month Food and meals Utilities (electricity, gas, water) Phone, cable, Internet Gas for car Clothing and personal items Entertainment (subscriptions, movies, hobbies) Periodic Expenses Occur every few months Car Maintenance Registration Health Doctor visits Prescriptions Student Loans and Budgeting Identify your approximate monthly student loan payment Find your approximate starting salary based on your major Consider all your upcoming expenses 3

4 Monthly Budget Work Sheet Income $2,167 Expenses Expenses $2,651 Deductions $433 Balance $484 Insurance $100 Based on: Major in Education: Special Needs Five years in school $14,500 in federal student loans $8,000 in private (supplemental) student loans Retirement $65 Housing $700 Food $250 Transportation $450 Utilities $150 Entertainment/Communication $150 Personal $100 Student Loan Payments $253 Total Expenses $2,651 Use Money-Saving Techniques Take advantage of student discounts Buy used books Carry only the cash you ve budgeted for the day or use a prepaid debit card Drink tap water instead of bottled water Use coupons, buy generic brands or purchase items in bulk Rent a DVD instead of going to a movie Stick to a basic cell phone plan What You Can Do Now Spend less every day Strategy Estimated Monthly Savings Make your own coffee instead of getting a large gourmet coffee every day. $72 Skip the fast-food lunch twice a week. $48 Rent a dollar movie instead of going out twice a month. $27 Use your dining plan instead of ordering pizza on Friday nights. $54 Rent or buy used books. $47 Downgrade to a basic cell phone plan. $34 Go to free Wi-Fi hotspots instead of paying for high-speed Internet. $50 Total Estimated Monthly Savings: $332 Total Estimated Yearly Savings: $3,984 4

5 Set Financial Goals Identify and write down specific goals Set a deadline Create a plan of action Take action Don t give up Short- and Long-Term Goals Short-term goals could include saving to buy a new outfit or computer Long-term goals could include saving for a car or graduating with as little debt as possible so you can pay off your student loans early 5

6 Fill Out the FAFSA Complete the Free Application for Federal Student Aid* Qualify for financial aid File as soon after Jan. 1 as possible each year enrolled in college FAFSA results determine your financial aid eligibility Iowa Tuition Grant due date: July 1 *The FAFSA is a free form that may be completed without professional assistance online or via paper forms provided by the U.S. Department of Education at Types of Student Loans Federal Subsidized Direct Loan Federal Unsubsidized Direct Loan Federal PLUS (parent loan) Private (supplemental) student loans 6

7 Student Loan Game Plan See real salaries and recommended borrowing limits for people who graduated with your major Learn ways to reduce your need to borrow loans Understand Your Student Loan Payments Federal Loans Private Loans Totals Total Amount Borrowed for College $14,500 $8,000 $22,500 Estimated Interest (Capitalized) $1,011 $1,084 $2,095 Balance at Repayment $15,511 $9,084 $24,595 Monthly Payment $179 $75 $254 Interest Paid $6,980 $10,000 $16,980 Total Paid $21,480 $18,000 $39,480 Estimated capitalized interest is based on past plus present loan amounts amortized over remaining years, including a six-month grace period, and constant interest payments capitalized once at the beginning of repayment Interest rates in this example are 6.80% with a 10-year repayment term for federal loans and 7.75% with a 20-year repayment term for private (supplemental) student loans Federal loans are based on national averages and assume 50% are subsidized and 50% are unsubsidized Origination fees are not factored into this example Student Loan Repayment Chart Federal Unsubsidized Stafford Loan (6.80% Fixed Interest Rate) Standard 10-Year Repayment Plan Maximum Amount Annual Salary Monthly Salary 8% of Monthly Salary Could Borrow $8,631 $719 $58 $5,000 $21,578 $1,798 $144 $12,500 $30,209 $2,517 $201 $17,500 $43,155 $3,596 $288 $25,000 $60,417 $5,035 $403 $35,000 $99,257 $8,271 $662 $57,500 $112,203 $9,350 $748 $65,000 $138,096 $11,508 $921 $80,000 Note: This chart is intended to show only the estimated amount of monthly payments required at various debt levels for Federal Unsubsidized Stafford Loans with a 6.80% fixed interest rate under the 10-year standard repayment plan (120 monthly payments) compared to annual salaries. The 8% of monthly salary amount represents both the estimated monthly payment amount for the total balance outstanding at the time of repayment as well as 8% of a monthly income at various salary levels. The final payment may be more or less than the amount indicated. 7

8 Change Your Perspective Understand the consequences of paying with credit Live off a small amount of cash Prepare early for your career Use Resources and Lower Costs Apply for financial aid Don t automatically borrow the maximum allowed Research grants and scholarships Explore loan forgiveness programs Find paid internships Volunteer in exchange for tuition payments Graduate in a timely manner Rent textbooks 8

9 Cut Living Expenses Live at home Eat what you bought and buy in bulk Find roommates Walk or bike instead of driving Reduce entertainment expenses Stay healthy Raise Your Income Work part-time Tutor other students Take a job where you can study Work over breaks and holidays See if relatives can help Save what you can Apply for scholarships! Reduce Your Student Loan Debt Make interest payments while you re in school Make extra payments While you re in school During your grace period During repayment There is no penalty for prepayment of student loans 9

10 Make Interest Payments To Save Deferring payments may increase your loan balance Make payments to cover your accrued interest Contact your lender or servicer to receive interest accrual statements Make Your Payments on Time Be responsible and make your monthly payments on time once you start repayment This will reflect well on you in the future with a good credit score 10

11 Decide If You re Ready for A Credit Card Do you really need one? Do you have the self-control to handle one responsibly? Will you be able to pay off the balance in full each month? Can you afford the interest charges and other fees? Consider Your Other Debt How much do you have in student loans? What other payments/debts will you have? What can you afford to pay toward credit card debt? How can you avoid using credit cards to pay for daily expenses? Are Credit Cards Worth It? Advantages Disadvantages Convenience High-interest loans Emergencies Added expenses Positive credit history Negative credit history Alternatives to Credit Cards Prepaid credit cards ATM/debit cards Cash 11

12 Be a Smart Consumer Research Compare several offers, paying attention to the length of the offer Look for the lowest annual percentage rate (APR) Recognize that no annual fee and other benefits may not always be the best choice Success Strategies for Managing Your Credit Cards Pay the monthly balance in full If you pay only the minimum required payment You ll pay additional interest It could take a long time to pay off your debt Success Strategies for Managing Your Credit Cards Use your credit card wisely Keep track of how much you owe throughout the month Ask yourself if the purchase is a necessity or something you can live without for now 12

13 Learn About Credit Reports Historical record of how you managed credit in the past Major national consumer reporting agencies Equifax, Experian, TransUnion Each report contains Your personal information Your payment information A record of inquiries Public record information Understand Credit Scores Quick and consistent way for a lender to determine your credit risk Based on information in your credit reports FICO scores are the most widely used scores and range from 300 to

14 How Credit Scores Are Calculated Payment History Amount Owed Length of Credit History New Credit Types of Credit Used Information for this chart was obtained from Fair Isaac Corporation. FICO is a registered trademark of Fair Isaac Corporation. Know Why Credit Matters Typically, good credit equals lower interest rates Save money Bad credit equals higher interest rates May be denied for credit cards or loans How Your Credit History Really Affects Your Everyday Life Compared to a 7.00% loan, an 18.00% loan will cost you: $84 more each month More than $5,000 extra in interest Good Credit History Average Credit History Bad Credit History Amount Borrowed $15,000 $15,000 $15,000 Repayment Term 60 months (5 years) 60 months (5 years) 60 months (5 years) Interest Rate 7.00% 12.00% 18.00% Monthly Payment $297 $334 $381 Total Amount Spent $17,821 $20,020 $22,854 14

15 Build and Maintain a Good Credit Score Keep balances and credit limits low on credit cards Don t open new credit cards that you don t need Limit the number of credit cards you have Don t close established accounts that show a long history of managing credit responsibly Build and Maintain a Good Credit Score Remember that closed accounts will remain on your credit report for up to seven years Reestablish your credit history if you ve had problems in the past Reduce your debt by making extra payments on loans and credit cards Building Credit Without A Credit Card Save bills and records of payment Get a secured loan Make sure loan is reported to consumer reporting agencies Become an authorized user on someone else s credit card 15

16 How to Build a Nontraditional Credit History Demonstrate your history of paying bills on time each month Save copies of bills and records of payments Request detailed reference letters Understand the Consequences Of Bad Credit Higher interest rates on loans and credit cards Higher deposits for services Higher rates for insurance Lost job opportunities Lost housing options Complete credit denial Review Your Credit Reports Review your credit reports annually for accuracy Request your free reports Online at By phone at (877)

17 Correct Errors Immediately Write a letter to the consumer reporting agency Include copies of documents that support your claim Send your letter by certified mail Add a personal statement to your credit report Impact of Identity Theft Identity theft affects millions of people in the United States each year Victims spend time and money to repair damage and restore their good names Protecting yourself is important for your financial future 17

18 How Criminals Get Information Dumpster diving Stealing mail Personal theft Insider compromise Hacking Internet and phone scams What a Criminal Can Do Run up charges on existing credit cards Authorize electronic funds transfers from accounts Acquire new loans in your name Open new bank accounts in your name Obtain a driver s license or passport with your name and their picture Sell your information to other criminals Consequences Do you carry your Social Security card in your wallet or purse? Criminals can steal your card and Obtain a driver s license or passport with your name and their picture Open new bank accounts in your name Acquire new loans in your name 18

19 Consequences Are you required to use your Social Security number as a student or employee identification number? Do any of your passwords contain the last four digits of your Social Security number? Criminals can Hack into computer systems to steal this information Create Internet and phone scams that try to trick you into giving out additional information Protect Yourself Do you regularly receive preapproved credit card applications in the mail? Protect yourself by Securing your incoming and outgoing mail Being aware of calls about accounts you did not open or the arrival of new credit cards you didn t apply for Going to or calling (888) 5-OPT-OUT to be excluded from offer lists Protect Yourself Has it been more than 12 months since you reviewed your credit report? Protect yourself by Regularly monitoring your bank and credit card account activity, statements and free annual credit reports Looking for credit card or loan requests you did not authorize Being alert for unusual or unfamiliar charges or withdrawals 19

20 Protect Yourself Do you throw away your bank statements, billing statements, credit card applications and other sensitive paperwork containing your personal information? Protect yourself by Cross-shredding these types of documents Requesting online bill delivery General Rules to Stay Safe Keep your personal information secure Safeguard your methods of payment Protect your computer(s) Take Action If You Become a Victim 1. File a report with the local police department 2. Contact your bank 3. Contact your credit card companies 4. Contact consumer reporting agencies 20

21 Take Action If You Become a Victim 5. Order copies of your credit reports 6. File a complaint with the Federal Trade Commission 7. Call the Social Security Administration 21

Credit Matters ICAN. Be a Smart Credit Consumer. Iowa College Access Network. Iowa College Access Network

Credit Matters ICAN. Be a Smart Credit Consumer. Iowa College Access Network. Iowa College Access Network Credit Matters Be a Smart Credit Consumer ICAN Iowa College Access Network Iowa College Access Network ICAN Iowa College Access Network The Iowa College Access Network (ICAN) helps individuals attain their

More information

Achieve Financial Success

Achieve Financial Success Achieve Financial Success Make Your Education and Financial Goals a Reality All About Your Success Achieve Financial Success Make Your Educational and Financial Goals a Reality Financial success is a lifelong

More information

Being College Savvy: Knowing How to Navigate the College System

Being College Savvy: Knowing How to Navigate the College System Being College Savvy: Knowing How to Navigate the College System Tim Bakula University of Northern Iowa Beth Carlson Grand View University Erick Danielson Iowa College Access Network Roberta Johnson Iowa

More information

Make a Smart Start Toward Financial Success SUNY ORANGE STUDENTS

Make a Smart Start Toward Financial Success SUNY ORANGE STUDENTS Make a Smart Start Toward Financial Success SUNY ORANGE STUDENTS A College Education is a Smart Investment High School Graduate $25,000 Some College $30,000 Associate s Degree $32,000 Bachelor s Degree

More information

You might be book smart, but... ARE YOU CREDIT WISE. A program to teach students the ins and outs of credit and personal finance.

You might be book smart, but... ARE YOU CREDIT WISE. A program to teach students the ins and outs of credit and personal finance. You might be book smart, but... ARE YOU CREDIT WISE A program to teach students the ins and outs of credit and personal finance. we ve all been there And if you re like most college students: And if you

More information

Understanding Credit BY Sallie Mae and FICO

Understanding Credit BY Sallie Mae and FICO Understanding Credit BY Sallie Mae and FICO Lisa Mitchell, Sallie Mae Brad Riebel, Sallie Mae April 2015 Session Focus Overview FICO and Sallie Mae partnership on ways to help students understand why credit

More information

Dimes to Riches Money Management for Teens in Grades 7-12

Dimes to Riches Money Management for Teens in Grades 7-12 Dimes to Riches Money Management for Teens in Grades 7-12 s e e r t n o row g t n s e o yd e n o M t a! h k t n a w b o n a k t u n By now yo Your parents are & Life is getting busy and you need cash for

More information

Protection. Identity. What should I do if I m. Common ID Theft TACTICS. a criminal obtains your personal information and uses it for his/her own gain.

Protection. Identity. What should I do if I m. Common ID Theft TACTICS. a criminal obtains your personal information and uses it for his/her own gain. Common ID Theft TACTICS. HOW DOES IT HAPPEN? Identity What should I do if I m a Protection PROTECT YOURSELF: OLD-FASHIONED STEALING: Criminals steal your wallet or purse. > Never leave your wallet or purse

More information

The Better Business Bureau. Student Assistance Foundation present. Common $ense. Tips to make college successful

The Better Business Bureau. Student Assistance Foundation present. Common $ense. Tips to make college successful The Better Business Bureau & Student Assistance Foundation present Common $ense Tips to make college successful You will leave so smart in these areas: Credit Identity Theft On Your Own Budgeting Let s

More information

20 Steps to Financial Health:

20 Steps to Financial Health: 20 Steps to Financial Health: Achieving Lifelong Financial Fitness American Consumer Credit Counseling 130 Rumford Avenue Auburndale, MA 02466 1.800.769.3571 ConsumerCredit.com On behalf of American Consumer

More information

GET CREDITWISE SM SM

GET CREDITWISE SM SM GET CREDITWISE SM SM Table Of Contents October, 2006 Credit Matters 1 An introduction Establishing Credit 3 Begin building a solid financial base Using Credit Wisely 5 Narrowing your options Monitoring

More information

Money Borrowing money

Money Borrowing money Money Borrowing money Aims: To enable young people to explore ways of borrowing money and the advantages and possible consequences of doing so. Learning Outcomes: By the end of the session the participants

More information

Welcome. 1. Agenda. 2. Ground Rules. 3. Introductions. To Your Credit 2

Welcome. 1. Agenda. 2. Ground Rules. 3. Introductions. To Your Credit 2 To Your Credit Welcome 1. Agenda 2. Ground Rules 3. Introductions To Your Credit 2 Objectives Define credit Explain why credit is important Describe the purpose of a credit report and how it is used Order

More information

Using Credit to Your Advantage

Using Credit to Your Advantage Hands on Banking Using Credit to Your Advantage Credit Reports, Credit Scores and Dealing with Debt The Hands on Banking program is a free public service provided by Wells Fargo. You may also access the

More information

Understanding Credit. Megan Stearns, Credit Counselor

Understanding Credit. Megan Stearns, Credit Counselor Understanding Credit Megan Stearns, Credit Counselor Obtaining your free credit report will lower your credit score. Closing old accounts can help your credit score. Paying off the balances on your credit

More information

Personal Money Management. Why and How we spend money and potential impacts to personal credit.

Personal Money Management. Why and How we spend money and potential impacts to personal credit. Personal Money Management Why and How we spend money and potential impacts to personal credit. Presentation Objectives Understanding Your Financial Personality Personal Credit Scores, impacts, tips, your

More information

2016 DollarWise Summer Youth Contest Final Quiz Study Guide

2016 DollarWise Summer Youth Contest Final Quiz Study Guide 2016 DollarWise Summer Youth Contest Final Quiz Study Guide The DollarWise Summer Youth Contest Final Exam questions are designed to test your full knowledge of the information provided in the contest.

More information

Why Credit is Important

Why Credit is Important Page 1 Why Credit is Important Page 6 How to Protect Yourself from Identity Theft Page 7 Cosigning and Money Lending Tips Page 8 How to Avoid Credit Card Interest Why Credit is Important Learning to build

More information

Bank of North Dakota College Planning Center

Bank of North Dakota College Planning Center 2 Bank of North Dakota College Planning Center It s hard to believe that the way you save and spend money as a high school student sets the stage for your future. If you develop good habits now, you are

More information

PROTECTING YOURSELF FROM IDENTITY THEFT. The Office of the Attorney General of Maryland Identity Theft Unit

PROTECTING YOURSELF FROM IDENTITY THEFT. The Office of the Attorney General of Maryland Identity Theft Unit PROTECTING YOURSELF FROM IDENTITY THEFT The Office of the Attorney General of Maryland Identity Theft Unit CONTENTS 1) What is Identity Theft? 2) How to Protect Yourself From ID Theft. 3) How to Tell If

More information

Understanding Credit

Understanding Credit Understanding Credit Topics covered: Establishing Credit Credit Scores Repairing Credit Why is credit necessary? Applying for a loan Applying for a credit card Applying for a mortgage Renting an apartment/house

More information

Student Loans. A straight forward guide to managing your student loans.

Student Loans. A straight forward guide to managing your student loans. Student Loans A straight forward guide to managing your student loans. Management Starts Early A college education is part of the American dream. Unfortunately, for most Americans, it s one part of the

More information

Getting Smart about Credit

Getting Smart about Credit Getting Smart about Credit LESSON PREPARATION AND TEACHER INFORMATION Lesson Summary: This lesson is intended for high school students during a 40 minute time period. The lesson teaches students about

More information

Keys to Your Financial Future Step 2.5: Credit Repair or Building Plan

Keys to Your Financial Future Step 2.5: Credit Repair or Building Plan 46 MODULE 2: Good credit Keys to Your Financial Future Step 2.5: Credit Repair or Building Plan Use the questions to develop your credit repair or building plan. Do you need to repair your credit history?

More information

Part 1 Test Question Bank

Part 1 Test Question Bank Module 1 1. Which is true regarding unemployment rates? a. The unemployment rate for people with a bachelor s degree and a high school diploma are the same. b. People with a bachelor s degree experience

More information

Using Credit to Your Advantage Credit Cards and Loans Participant Guide

Using Credit to Your Advantage Credit Cards and Loans Participant Guide Hands on Banking Using Credit to Your Advantage The Hands on Banking program is a free public service provided by Wells Fargo. You may also access the program anytime at www.handsonbanking.org & www.elfuturoentusmanos.org

More information

Understanding and Managing Student Debt

Understanding and Managing Student Debt Understanding and Managing Student Debt CU Debt Management Presented by: Rob Drybread Facing the Numbers However, college is still worth the investment and today we will talk about your options for managing

More information

"Get Your Money Straight!" EOP Workshop on Financial Literacy Fall 2008

Get Your Money Straight! EOP Workshop on Financial Literacy Fall 2008 "Get Your Money Straight!" EOP Workshop on Financial Literacy Fall 2008 Financial Literacy: Financial Aid and Student Loans Credit Budgeting Financial Aid Loan Repayment: Loan repayment begins 6 months

More information

for Newcomers and New Canadians Module 2 How to Build Credit In Canada Student Workbook

for Newcomers and New Canadians Module 2 How to Build Credit In Canada Student Workbook for Newcomers and New Canadians Module 2 How to Build Credit In Canada Student Workbook Welcome! This workshop is about credit. Credit is buying something now, but paying for it later. Credit can be useful

More information

What We Need to Know About. Credit Management & Credit Repair for Entrepreneurs

What We Need to Know About. Credit Management & Credit Repair for Entrepreneurs What We Need to Know About. Credit Management & Credit Repair for Entrepreneurs What is Credit? When someone lends you money, and you pay them back with interest, they have extended you credit. Credit

More information

Understanding and managing your credit

Understanding and managing your credit Understanding and managing your credit Overview Understanding how credit works and how it affects your chances of getting approved for a loan is important. In this presentation, you ll learn helpful ways

More information

Money Management. A College Student s Guide to Success. Lisa Wainwright Missouri State University Real LIFE

Money Management. A College Student s Guide to Success. Lisa Wainwright Missouri State University Real LIFE Money Management A College Student s Guide to Success Lisa Wainwright Missouri State University Real LIFE 0 1/24/2011 Missouri State University Real LIFE Tip 1: Set Your Goals The first thing you do before

More information

FWA HSBC Financial Backpack Program

FWA HSBC Financial Backpack Program FWA HSBC Financial Backpack Program Understanding Credit All materials are on FWA.ORG Follow us on FACEBOOK Top Lessons Credit has many advantages and disadvantages Understand costs of credit: principal,

More information

Financial fitness for the future. Finances out of shape. Learn to manage your money. Managing your money

Financial fitness for the future. Finances out of shape. Learn to manage your money. Managing your money Finances out of shape. Learn to manage your money. Financial fitness for the future. Managing your money W E S T E R N U N I O N F O U N D A T I O N You want a better future. A better life. A better education.

More information

Credit Workshop. What I need to know about credit and lending products of financial institutions. Financial Education Supported by:

Credit Workshop. What I need to know about credit and lending products of financial institutions. Financial Education Supported by: Credit Workshop What I need to know about credit and lending products of financial institutions. Financial Education Supported by: Concept Checklist What will I learn today? [ ] What is Credit? [ ] Advantages/

More information

How do I get good credit?

How do I get good credit? Slide 1 Credit The information provided in this e-course is intended for educational purposes only and does not constitute specific advice for you as an individual. When evaluating your particular needs,

More information

Fun, engaging and effective. Aligned with national financial education and core curriculum requirements.

Fun, engaging and effective. Aligned with national financial education and core curriculum requirements. Building Your Financial Foundation Adult Level Curriculum - Instructors Guide Fun, engaging and effective. Aligned with national financial education and core curriculum requirements. Lessons on: Credit

More information

Financial Planning Issues. for Dental Students

Financial Planning Issues. for Dental Students Financial Planning Issues for Dental Students Financial Planning Issues Let s face it dental school is expensive. And while your education is an investment in your future success, the financial choices

More information

Credit Report Forensics. Boston University Financial Assistance February 15, 2012 Christina Coviello, Senior Assistant Director

Credit Report Forensics. Boston University Financial Assistance February 15, 2012 Christina Coviello, Senior Assistant Director Credit Report Forensics Boston University Financial Assistance February 15, 2012 Christina Coviello, Senior Assistant Director Today s Agenda: What is credit? What is a credit report? How to get a copy

More information

Mapping Your Future Guide to Life after High School SM : Senior Year

Mapping Your Future Guide to Life after High School SM : Senior Year Mapping Your Future Guide to Life after High School SM : Senior Year Get prepared for life after high school Some people know from an early age exactly what they want to be when they are adults and how

More information

Maureen Baran SVP Business Development. Kris Bona Business Relationship Officer

Maureen Baran SVP Business Development. Kris Bona Business Relationship Officer Williams College Maureen Baran SVP Business Development Kris Bona Business Relationship Officer Agenda What is credit and why is it so important? Credit reports and credit scores Building credit Comparing

More information

Banking & Budgeting Basics: Making the most of your money

Banking & Budgeting Basics: Making the most of your money Growing Dollars and $ense Workshops Banking & Budgeting Basics: Making the most of your money Presented by The Coalition for Debtor Education www.debtoreducati0n.org This program is made possible by a

More information

Agenda. 1. Assessing Your Situation A. 3 types of consumers B. Net Worth C. Net Cash Flow

Agenda. 1. Assessing Your Situation A. 3 types of consumers B. Net Worth C. Net Cash Flow 1 Agenda 1. Assessing Your Situation A. 3 types of consumers B. Net Worth C. Net Cash Flow 2. Revolving Credit A. Credit vs. Charge vs. Debit Cards B. Tips on Revolving Credit C. Home Equity Line Credit

More information

Credit Cards. The Language of Credit. Student Loans. Installment Loans 12/17/2015. Quick Response. Unit 4 - Good Debt, Bad Debt: Using Credit Wisely

Credit Cards. The Language of Credit. Student Loans. Installment Loans 12/17/2015. Quick Response. Unit 4 - Good Debt, Bad Debt: Using Credit Wisely Quick Response Explain how you think credit cards work. How much do you have to pay every month? What happens if you pay late? What kinds of fees are involved? Unit 4 - Good Debt, Bad Debt: Using Credit

More information

For more help on saving and paying off debt, please visit www.norwaysavingsbank.com/resources_center/calculators/

For more help on saving and paying off debt, please visit www.norwaysavingsbank.com/resources_center/calculators/ For more help on saving and paying off debt, please visit www.norwaysavingsbank.com/resources_center/calculators/ Practical Savings Tips for Every Day Saving Try take-out once a month instead of dining

More information

Lesson 2: Savings and Financial Institution Knowledge Making the Most of Your Money

Lesson 2: Savings and Financial Institution Knowledge Making the Most of Your Money Lesson 2: Savings and Financial Institution Knowledge Making the Most of Your Money All the materials and information included in this presentation is provided for educational and illustrative purposes

More information

Financial Literacy for life beyond high school. What you will find in this booklet:

Financial Literacy for life beyond high school. What you will find in this booklet: Money Matter$ 9 Financial Literacy for life beyond high school The purpose of this work book is to provide you with some financial knowledge as you prepare to embark on life beyond high school. According

More information

BEAN BUDGET: A budgeting exercise

BEAN BUDGET: A budgeting exercise BEAN BUDGET: A budgeting exercise Objective: Help students think about how to make budgeting choices and how to determine spending priorities. Time: 0 minutes Materials: Bean Budget Handout (2-page) Cut

More information

TALKING POINTS COLLEGE STUDENTS PRESENTED BY JEAN CHATZKY AND PASS FROM AMERICAN EXPRESS SM

TALKING POINTS COLLEGE STUDENTS PRESENTED BY JEAN CHATZKY AND PASS FROM AMERICAN EXPRESS SM INTRODUCTION Give your kids a heads-up that tonight you re going to make some time to talk about money. It won t take all night, but they should clear their schedule. If your kid is away at college, and

More information

Good morning everyone! Welcome! My name is Daniel Hewitt and I m the Director of Financial Aid here at VCOM. I know I ve talked to some of you

Good morning everyone! Welcome! My name is Daniel Hewitt and I m the Director of Financial Aid here at VCOM. I know I ve talked to some of you Good morning everyone! Welcome! My name is Daniel Hewitt and I m the Director of Financial Aid here at VCOM. I know I ve talked to some of you already, and Eloise and I are looking forward to working with

More information

SOME IDEAS THAT MAY HELP WITH. Credit Problems and How to Get Help

SOME IDEAS THAT MAY HELP WITH. Credit Problems and How to Get Help 66308 1083 9/9/04 3:03 PM Page Cov1 SOME IDEAS THAT MAY HELP WITH Credit Problems and How to Get Help 66308 1083 9/9/04 3:03 PM Page Cov2 Table of Contents Do you have a credit problem? 1 Minor credit

More information

Financial AID. for Law School: A PRELIMINARY GUIDE. A Publication of the Law School Admission Council. Visit us at www.lsac.org or call 215.968.1001.

Financial AID. for Law School: A PRELIMINARY GUIDE. A Publication of the Law School Admission Council. Visit us at www.lsac.org or call 215.968.1001. Financial AID for Law School: A PRELIMINARY GUIDE A Publication of the Law School Admission Council. Visit us at www.lsac.org or call 215.968.1001. Introduction Considering law school but concerned about

More information

Justin Kribs, CFP. Manager, Student Debt Counseling and Financial Management

Justin Kribs, CFP. Manager, Student Debt Counseling and Financial Management Credit Management Justin Kribs, CFP Manager, Student Debt Counseling and Financial Management Overview After attending this session students should be able to Understand the parts of their credit score

More information

Personal Banking 101 Interested in learning about how to manage your money? Personal Banking 101 will help you understand the financial fundamentals.

Personal Banking 101 Interested in learning about how to manage your money? Personal Banking 101 will help you understand the financial fundamentals. Personal Banking 101 Interested in learning about how to manage your money? Personal Banking 101 will help you understand the financial fundamentals. Checking Account If you need a safe place to keep your

More information

Credit: The Good and the Bad

Credit: The Good and the Bad Managing Your Credit Effectively Credit can be a valuable addition to your financial toolbox if you use it carefully and sensibly. Credit means someone is willing to loan you money called Principal in

More information

LIVE LIFE SMART GUIDE

LIVE LIFE SMART GUIDE LIVE LIFE SMART GUIDE HELPFUL TIPS TO MANAGE YOUR STUDENT LOANS Nelnet.com 888.486.4722 2015 Nelnet, Inc. All rights reserved. Nelnet is a registered service mark of Nelnet, Inc. TABLE OF CONTENTS Introduction.........................................................................

More information

Good Debt, Bad Debt U S I N G C R E D I T W I S E L Y

Good Debt, Bad Debt U S I N G C R E D I T W I S E L Y Good Debt, Bad Debt U S I N G C R E D I T W I S E L Y What is Credit? Someone is willing to lend you money (principal) in exchange for your promise to repay it, usually with interest. Interest amount you

More information

Financial AID. for Law School: A PRELIMINARY GUIDE. A Publication of the Law School Admission Council. Visit us at www.lsac.org or call 215.968.1001.

Financial AID. for Law School: A PRELIMINARY GUIDE. A Publication of the Law School Admission Council. Visit us at www.lsac.org or call 215.968.1001. Financial AID for Law School: A PRELIMINARY GUIDE A Publication of the Law School Admission Council. Visit us at www.lsac.org or call 215.968.1001. Introduction Considering law school but concerned about

More information

Slide 3 - When you get a new credit card, activate and sign your card.

Slide 3 - When you get a new credit card, activate and sign your card. Five Keys to Credit for Today Notes for PowerPoint Slide 2 - There are many reasons to know what s in your wallet. We all carry many records, cards, identification, health cards and more in our wallets.

More information

Familiarize yourself with laws that authorize and regulate vehicle dealership financing and leasing.

Familiarize yourself with laws that authorize and regulate vehicle dealership financing and leasing. W ith prices averaging more than $28,000 for a new vehicle and $15,000 for a used vehicle, most consumers need financing or leasing to acquire a vehicle. In some cases, buyers use direct lending: they

More information

Standard 7: The student will identify the procedures and analyze the 3 responsibilities of borrowing money.

Standard 7: The student will identify the procedures and analyze the 3 responsibilities of borrowing money. TEACHER GUIDE 7.3 BORROWING MONEY PAGE 1 Standard 7: The student will identify the procedures and analyze the 3 responsibilities of borrowing money. Your Credit Score Priority Academic Student Skills Personal

More information

Money Management 101. Financial Literacy Committee Victoria College

Money Management 101. Financial Literacy Committee Victoria College Money Management 101 Financial Literacy Committee Victoria College 1) What counts the most in your a) Length of History FICO credit score? b) Capacity Used c) New Credit d) On-Time Payments e) Types of

More information

SM4-1: Credit Card Application (version 1)

SM4-1: Credit Card Application (version 1) SM4-1: Credit Card Application (version 1) SM4-1: Credit Card Application (version 1) pg. 1 of 2 SM4-1: Credit Card Application (version 1) continued SM4-1: Credit Card Application (version 1) pg. 2 of

More information

6. Understanding and Managing Credit

6. Understanding and Managing Credit 6. Understanding and Managing Credit Introduction Credit is a wonderful tool that has allowed many people to achieve goals they might not have otherwise been able to achieve, such as buying a home or paying

More information

JUST BEGINNING. Your financial life is. I m Buying a Car!

JUST BEGINNING. Your financial life is. I m Buying a Car! Your financial life is JUST BEGINNING. The decisions you make now will put a steering wheel and a credit card in your hands. But they will also affect your financial future. Your choices may even prevent

More information

MANAGING CREDIT101 TM %*'9 [[[ EPXEREJGY SVK i

MANAGING CREDIT101 TM %*'9 [[[ EPXEREJGY SVK i MANAGING CREDIT101 TM i This book is intended as a general guide to the topics discussed, and it does not deliver accounting, personal finance, or legal advice. It is not intended, and should not be used,

More information

Financial Literacy. Managing your credit. Debt Load. Consolidation Facts to Consider

Financial Literacy. Managing your credit. Debt Load. Consolidation Facts to Consider Consolidation Facts to Consider The terms of your loan are dependent on your total loan debt. Consolidation loans are paid off in 12 years to 30 years based on your total outstanding debt. You may always

More information

Your Financial Aid Journey. Investing in Your Future 5 Steps to Prepare for College College Financing Options Financial Aid Terms

Your Financial Aid Journey. Investing in Your Future 5 Steps to Prepare for College College Financing Options Financial Aid Terms Your Financial Aid Journey Investing in Your Future 5 Steps to Prepare for College College Financing Options Financial Aid Terms Investing in your future Higher earnings College graduates earn more money

More information

Personal Protection and Peace of Mind with IDProtect

Personal Protection and Peace of Mind with IDProtect INSIDE: Tips to safeguard your identity! Personal Protection and Peace of Mind with IDProtect IDProtectBrochRedesign_v2.indd 1 The Numbers Say It All Will you become a victim of identity theft? For the

More information

GFCU_FusionBookofMoney.qxd 4/15/11 9:47 PM Page 1. Give Yourself Some Credit! A Greylock Federal Credit Union Financial Literacy Guide

GFCU_FusionBookofMoney.qxd 4/15/11 9:47 PM Page 1. Give Yourself Some Credit! A Greylock Federal Credit Union Financial Literacy Guide GFCU_FusionBookofMoney.qxd 4/15/11 9:47 PM Page 1 Give Yourself Some Credit! A Greylock Federal Credit Union Financial Literacy Guide GFCU_FusionBookofMoney.qxd 4/15/11 9:47 PM Page 2 Contents How Does

More information

StudentChoice. Student loans are an integral part of financing a college education. Educate yourself, and borrow wisely.

StudentChoice. Student loans are an integral part of financing a college education. Educate yourself, and borrow wisely. StudentChoice Student loans are an integral part of financing a college education. Educate yourself, and borrow wisely. 2 2 What are my student loan options? Federal Student Loans A federal student loan

More information

Federal Direct Exit Loan Counseling

Federal Direct Exit Loan Counseling Federal Direct Exit Loan Counseling Student Financial Services Fall 2012 What is Exit Counseling and Why are You Here? Exit counseling is a way for students to understand their rights and responsibilities.

More information

Security Breaches. There are unscrupulous individuals, like identity thieves, who want your information to commit fraud.

Security Breaches. There are unscrupulous individuals, like identity thieves, who want your information to commit fraud. IDENTITY THEFT Security Breaches Our economy generates an enormous amount of data. Most users of that information are from honest businesses - getting and giving legitimate information. Despite the benefits

More information

About Credit. Financial Literacy

About Credit. Financial Literacy About Credit Financial Literacy What is Credit? Credit is the ability to borrow money with a promise of future payment. Why borrow? Goals - car, appliances, furniture, etc Home Education Health Plan your

More information

STUDENT LOAN ENTRANCE COUNSELING August 17, 2015

STUDENT LOAN ENTRANCE COUNSELING August 17, 2015 STUDENT LOAN ENTRANCE COUNSELING August 17, 2015 AGENDA 1. Loan Highlights 2. Money Basics 3. Protecting Your Identity 4. Reports and Scores 5. Life After College Loan Highlights FAFSA.gov FAFSA Master

More information

Money Management 29 Money Management Tips Every University Student Should Know

Money Management 29 Money Management Tips Every University Student Should Know Money Management 29 Money Management Tips Every University Student Should Know Financial Planning Creating Budgets Using Money Wisely Financial Aid Office California State University, San Bernardino 5500

More information

lesson eight credit cards overheads

lesson eight credit cards overheads lesson eight credit cards overheads shopping for a credit card costs: Annual Percentage Rate (APR) or Finance (Interest) Charges Grace period Annual fees Transaction fees Balancing computation method for

More information

ENTRANCE COUNSELING GUIDE

ENTRANCE COUNSELING GUIDE ENTRANCE COUNSELING GUIDE For Direct Loan Borrowers ENTRANCE COUNSELING GUIDE For Direct Loan Borrowers CONTENTS TYPES OF DIRECT LOANS Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans,

More information

What Is Direct Loan Entrance Counseling?

What Is Direct Loan Entrance Counseling? What Is Direct Loan Entrance Counseling? Federal regulations require that you, as a first-time student loan borrower, complete an Entrance Counseling session. You can complete the entire session online

More information

EXIT COUNSELING GUIDE FOR BORROWERS OF DIRECT LOANS AND FEDERAL FAMILY EDUCATION PROGRAM LOANS

EXIT COUNSELING GUIDE FOR BORROWERS OF DIRECT LOANS AND FEDERAL FAMILY EDUCATION PROGRAM LOANS EXIT COUNSELING GUIDE FOR BORROWERS OF DIRECT LOANS AND FEDERAL FAMILY EDUCATION PROGRAM LOANS U.S. Department of Education Arne Duncan Secretary Federal Student Aid James W. Runcie Chief Operating Officer

More information

Weaving the strength of our past with. to ensure your financial success. Jeanne D Arc Credit Union THE POSSIBILITIES OF THE FUTURE

Weaving the strength of our past with. to ensure your financial success. Jeanne D Arc Credit Union THE POSSIBILITIES OF THE FUTURE Weaving the strength of our past with THE POSSIBILITIES OF THE FUTURE to ensure your financial success. money management guide Jeanne D Arc Credit Union we share a common thread elcome to Jeanne D Arc

More information

Introduction. Purpose. Student Introductions. Agenda and Ground Rules. Objectives

Introduction. Purpose. Student Introductions. Agenda and Ground Rules. Objectives Introduction Instructor and student introductions. Module overview. 1 2 Your name. Student Introductions Your expectations, questions, and concerns about credit. Purpose will: Show you how to read a credit

More information

Credit Cards: Advantages & Disadvantages

Credit Cards: Advantages & Disadvantages Credit Cards: Advantages & Disadvantages Latino Community Credit Union & Latino Community Development Center CREDIT CARDS: BUILDING A better FUTURE ADVANTAGES AND DISADVANTAGES Latino Community Credit

More information

2014 Junior Achievement USA, M1205 Debit and Credit PowerPoint

2014 Junior Achievement USA, M1205 Debit and Credit PowerPoint JA Finance Park will help you build a foundation for making intelligent, lifelong personal financial decisions. Topics include income and saving, credit and debit, and budgeting. 2014 Junior Achievement

More information

How to Use Credit. Latino Community Credit Union & Latino Community Development Center

How to Use Credit. Latino Community Credit Union & Latino Community Development Center How to Use Credit Latino Community Credit Union & Latino Community Development Center How to Use Credit Latino Community Credit Union & the Latino Community Development Center www.latinoccu.org Copyright

More information

Finances for College Students

Finances for College Students Finances for College Students If you are like most college students, your top priority is your education, but you can make sure monetary concerns don t get in the way of your studies by fitting financial

More information

Medical School Loan Repayment & Building Credit

Medical School Loan Repayment & Building Credit Medical School Loan Repayment & Building Credit Presented by: Thomas Murphy Harvard University Employees Credit Union Presentation Objectives Medical School Loan Overview Forbearance or Repayment Understanding

More information

Cash Course: what you should know about money. Fall 2014

Cash Course: what you should know about money. Fall 2014 Cash Course: what you should know about money Fall 2014 Agenda Financial Capability Spending Plans Banking Basics Student Loan Interest Credit Management Identity Protection Financial Capability Financial

More information

BalanceTrack. The World of Credit Reports

BalanceTrack. The World of Credit Reports BalanceTrack The World of Credit Reports Credit reports and credit scores influence our lives in many ways. Your history of credit management can affect the cost of the credit you receive, your ability

More information

GETTING. Credit. What you need to know about. www.ftc.gov/gettingcredit

GETTING. Credit. What you need to know about. www.ftc.gov/gettingcredit GETTING Credit www.ftc.gov/gettingcredit yourcredit. What you need to know about Toll-Free 1-877-FTC-HELP (1-877-382-4357) www.ftc.gov The Federal Trade Commission (FTC) is the nation s consumer protection

More information

Exercise 4A: What Info Do You Need for a Loan?

Exercise 4A: What Info Do You Need for a Loan? Exercise 4A: What Info Do You Need for a Loan? What information do you think is needed to get a loan? Review several samples of loan applications to see what The Cost of Using Credit As mentioned earlier,

More information

Dr. Debra Sherrill Central Piedmont Community College

Dr. Debra Sherrill Central Piedmont Community College Dr. Debra Sherrill Central Piedmont Community College 2 Understand the types of installment loans. Identify ways to pay for college. Know how to purchase a car. 3 I. Introduction to Financial Terms II.

More information

Using Credit to Your Advantage.

Using Credit to Your Advantage. Using Credit to Your Advantage. Topic Overview. The Using Credit To Your Advantage topic will provide participants with all the basic information they need to understand credit what it is and how to make

More information

ENTRANCE COUNSELING GUIDE

ENTRANCE COUNSELING GUIDE ENTRANCE COUNSELING GUIDE For Direct Loan SM Borrowers ENTRANCE COUNSELING GUIDE For Direct Loan SM Borrowers CONTENTS TYPES OF DIRECT LOANS...1 Direct Subsidized Loans, Direct Unsubsidized Loans, Direct

More information

Loan Lessons. The Low-Down on Loans, Interest and Keeping Your Head Above Water. Course Objectives Learn About:

Loan Lessons. The Low-Down on Loans, Interest and Keeping Your Head Above Water. Course Objectives Learn About: Loan Lessons Course Objectives Learn About: Different Types of Loans How to Qualify for a Loan Different Types of Interest The Low-Down on Loans, Interest and Keeping Your Head Above Water usbank.com/financialeducation

More information

A crash course in credit

A crash course in credit A crash course in credit Ever get the feeling that you re being watched? That someone s keeping an eye on how you handle your money? Well, you re not just imagining things. Banks, credit card companies,

More information

3. Develop a spending plan for your retirement. Having a plan for your money and limiting expenses in retirement is important.

3. Develop a spending plan for your retirement. Having a plan for your money and limiting expenses in retirement is important. For Kupuna: 15 Quick Tips for Protecting Your Finances As many consumers get older, they often face issues such as how to maintain their lifestyle and pay for medical expenses on a fixed income for years

More information

Personal Finance. Your Money Matters

Personal Finance. Your Money Matters Personal Finance Your Money Matters The decision to attend college is one that will create many opportunities for you. What lies ahead of you is full of possibility. While this is cause for excitement,

More information

Credit 100 understanding credit

Credit 100 understanding credit Credit 100 understanding credit An investment in knowledge always pays the best interest. Franklin D. Roosevelt Credit 100 1 Credit can open doors to buying a home or a car. But it can also lead to significant

More information

Loan Lessons. The Low-Down on Loans, Interest and Keeping Your Head Above Water. Course Objectives Learn About:

Loan Lessons. The Low-Down on Loans, Interest and Keeping Your Head Above Water. Course Objectives Learn About: usbank.com/student financialgenius.usbank.com Course Objectives Learn About: Different Types of Loans How to Qualify for a Loan Different Types of Interest Loan Lessons The Low-Down on Loans, Interest

More information